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Restructuring |  The speed of light cancels out 280 positions

Restructuring | The speed of light cancels out 280 positions

(Montreal) Lightspeed Commerce announced on Wednesday that it will cut 280 jobs as part of a restructuring, at a time when it is experiencing financial difficulties in a difficult economic context for its customers.

These job cuts represent approximately 10% of employee-related operating expenses, the cloud commerce specialist explains in a press release.

These cuts are part of a broader effort to save money. The Montreal company in particular says it has undertaken several other initiatives to reduce costs in its facilities and operations.

According to Lightspeed founder and CEO Dax DaSilva, who took the helm of the company in February, the company is “now entering a phase focused on operational efficiency and profitable growth.”

He adds: “Therefore, difficult decisions must be taken, such as reducing employment costs to allow investment in other sectors.” We go through this mandatory passage recognizing the invaluable contribution of each team member along our journey. »

In January 2023, the company also announced the elimination of 300 jobs, or 10% of its workforce at the time.

Since then, his financial situation has continued to deteriorate. Last February, its stock was still 86% below its August 2021 high.

In this regard, Lightspeed intends to repurchase up to a maximum of 10% of its offering shares, which is the annual maximum permitted under the rules of the Toronto Stock Exchange, representing approximately US$140 million.

Lightspeed's Head of Financial Services, Asha Bakshani, emphasizes that this transaction will create value for shareholders and reduce dilution attributable to the employee stock ownership plan.

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The company added on Wednesday that it still expects revenue of between $895 million and $905 million for fiscal 2024, which ended March 31, plus earnings before interest, taxes, depreciation and amortization, to be balanced or positive. It will provide an update on this topic when it reveals fourth-quarter results in May.

Lightspeed expects that the majority of restructuring costs will be incurred during the first quarter of fiscal 2025, which has just begun, and that implementation of its restructuring plan will be largely completed by the end of the same period, which is due to expire on June 30.

Company in this posting: (TSX:LSPD)